San Marino Cement Walls, Inc. v. Laborers' Local Unions 334 & 1076

655 F. Supp. 608, 124 L.R.R.M. (BNA) 2546, 1986 U.S. Dist. LEXIS 15691
CourtDistrict Court, E.D. Michigan
DecidedDecember 22, 1986
DocketCiv. No. 86-1660
StatusPublished

This text of 655 F. Supp. 608 (San Marino Cement Walls, Inc. v. Laborers' Local Unions 334 & 1076) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
San Marino Cement Walls, Inc. v. Laborers' Local Unions 334 & 1076, 655 F. Supp. 608, 124 L.R.R.M. (BNA) 2546, 1986 U.S. Dist. LEXIS 15691 (E.D. Mich. 1986).

Opinion

CORRECTED MEMORANDUM OPINION

RALPH M. FREEMAN, District Judge.

This is an action to vacate an arbitration award, brought pursuant to 29 U.S.C. § 185. Plaintiff, San Marino Cement Walls, Inc. (San Marino), is in the business of constructing poured concrete wall foundations for residential buildings (Transcript of Arbitration Proceedings [hereinafter “Transcript”], p. 66). In 1982, San Marino became a signatory to the collective bargaining agreement executed by the Laborers’ Local Unions 334 and 1076 (Union) and the Poured Concrete Wall Association, Inc. (Association) (Transcript, p. 67).1 San Mar-ino was not a member of the Association, although it employed members of the union (Transcript, p. 66).

In early 1984, George Rastelli, vice president of San Marino, was advised that certified public accountants would be conducting a routine audit of San Marino’s books and records, pursuant to the fringe benefit provisions of the collective bargaining agreement (Transcript, p. 68). The purpose of the audit was to determine whether San Marino had been complying with its obli[609]*609gation to make contributions to the union’s various fringe benefit funds2 (Transcript, pp. 12, 13, 68). The audit was finalized in May 1984, at which time San Marino was notified that it owed an additional $80,-676.48 to the funds for the period 1980 through 1983 based on its failure to comply with the “contracting out” provisions of the collective bargaining agreement3 (Transcript, pp. 13-17). San Marino disputed the applicability of the contracting out provisions and, accordingly, refused to pay the audit indebtedness4 (Transcript, p. 70).

Because of San Marino’s refusal to pay the audit indebtedness, the union filed unfair labor practice charges with the National Labor Relations Board (Board) on June 1. 1984. In accordance with its decision in Collyer Insulated Wire, 192 NLRB 837 (1971), the Board declined to hear the unfair labor practice charge and deferred to arbitration as provided for in the collective bargaining agreement5 (NLRB’s Deferral Letter, dated July 31, 1984, Defendants’ Brief, Exhibit E). The union filed its grievance with the Labor Relationship Committee (LRC) on November 19, 1984.6

A hearing with respect to the grievance was held before the LRC on October 30, 1985. In its opening statement before the LRC, San Marino objected to the LRC considering the merits of the grievance on the ground that the union had failed to file its grievance within the time period provided in the collective bargaining agreement7 (Transcript, pp. 4-5). San Marino, nevertheless, participated in the arbitration hearing without waiving its objection to the arbitrability of the grievance (Transcript, pp. 4, 6).

The LRC issued its award on February 25, 1986. In its written decision, the LRC rejected San Marino’s objection to the arbi-trability of the grievance on essentially three grounds. First, the LRC concluded that San Marino had waived its right to object by agreeing to defer the Unions’ unfair labor practice charges to arbitration. Second, the LRC concluded that San Mari-no was estopped from asserting the untimeliness of the grievance as a defense because San Marino had concealed or misrepresented the status of those employees on whose behalf the fringe benefit contributions in question were payable. Finally, the LRC concluded that the relevant time limitations applied only to grievances involving Association members and not to grievances involving non-Association signatories (Award of the Labor Relationship Committee [hereinafter “Award”], pp. 6-7).8 With respect to the merits of the grievance, the LRC found in favor of the [610]*610Union, albeit for a lesser amount than the audit indebtedness.9

On April 22, 1986, San Marino brought this suit to set aside the LRC’s award. The Union filed a counterclaim on May 12, 1986 to enforce the LRC’s award or, in the alternative, seeking a judgment for the full amount of the audit indebtedness. This matter is presently before the Court on cross-motions: San Marino moves to set aside the award, and the Union moves for confirmation of the award.

San Marino urges the Court to set aside the LRC’s award on the ground that the LRC exceeded its authority by finding that the grievance was arbitrable. The Sixth Circuit summarized the principles which this Court must apply in' reviewing the LRC’s award as follows:

In the Steelworkers Trilogy cases decided in 1960, the Supreme Court clarified the judiciary’s role in the specific context of labor arbitration pursuant to collective bargaining agreements. Noting that “arbitration of labor disputes has quite different functions from arbitration under an ordinary commercial agreement,” the Court stated that the role played by the judiciary in the context of collectively bargained-for arbitration should be “strictly confined.” Steelworkers v. Warrior & Gulf Co., 363 U.S. 574, 578, 582 [80 S.Ct. 1347, 1350,1353, 4 L.Ed.2d 1409] (1960). In Steelworkers v. Enterprise Corp., 363 U.S. 593 [80 S.Ct. 1358, 4 L.Ed.2d 1424] (1960), the Court discussed the role of labor arbitrators and the power of a federal court to review their awards:
[T]he question of interpretation of the collective bargaining agreement is a question for the arbitrator. It is the arbitrator’s construction which was bargained for; and so far as the arbitrator’s decision concerns construction of the contract, the courts have no business overruling him because their interpretation of the contract is different from his.
____ Nevertheless, an arbitrator is confined to interpretation and application of the collective bargaining agreement; he does not sit to dispensé his own brand of industrial justice____ [H]is award is legitimate only so long as it draws its essence from the collective bargaining agreement. When the arbitrator’s words manifest an infidelity to this obligation, courts have no choice but to refuse enforcement of the award.
Id., 363 U.S. at 599, 597 [80 S.Ct. at 1362, 1361]; see also Timken Co. v. Local No. 1123, United Steelworkers of America, 482 F.2d 1012 (6th Cir.1973). Consequently, an arbitrator’s decision is entitled to great deference and generally should be upheld absent irrationality or disregard of plain and unambiguous language in the agreement. See, e.g., General Telephone Co. of Ohio v. Communications Workers, 648 F.2d 452, 457 (6th Cir.1981); Detroit Coil v. International Ass’n of M. & A. Workers, 594 F.2d 575, 579-81 (6th Cir.), cert. denied, 444 U.S. 840 [100 S.Ct. 79, 62 L.Ed.2d 52] (1979).

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655 F. Supp. 608, 124 L.R.R.M. (BNA) 2546, 1986 U.S. Dist. LEXIS 15691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-marino-cement-walls-inc-v-laborers-local-unions-334-1076-mied-1986.